Why can't you ever guess the direction of the market?
If you're a beginner, you're probably wondering why the market always seems to go against you.
Many people fall into the trap of FOMO, that fear of missing out on gains that seem within reach. When the market is going up sharply, excitement and euphoria can lead you to buy at the wrong times, just when institutional investors and experienced traders are selling their positions at those high peaks. The result: you get stuck, believing that the market always goes up and that the fall will never come.
This phenomenon is mainly caused by two reasons:
1. Herd mentality: Professionals are experts at taking advantage of the behavior of the masses. They know that most newbies feel that they can't let that winning crypto go. With the bias of greed and emotion running high, they buy without thinking. But, while they buy, the market is about to make its inevitable pullback, driven by the sales of those who know when to get out.
2. Lack of knowledge of trading basics: Many newbies are unaware of when to buy or sell, lack a solid strategy, and do not understand market cycles. This lack of knowledge leads them to make the same mistakes over and over again, leaving the path clear for traders who have learned. The latter have overcome the traps of their emotions, have tested their own strategies. They are the ones who understand that trading is an art that is forged in the fire of experience.
If you have not yet gone through this learning process, it is time to ask yourself if you want to continue playing chips, or are you willing to train your mind to trade like a professional. Leave the complaint behind and think twice before buying at a high point. Don't be liquidity.
This is a game of probability where you must not only know when to buy and sell, but understand how others think and act and take advantage of it.
These are times for reading.